Covid-19 and Your Finances: 7 Steps to Get on Track - May 27, 2020
First and foremost, the Covid-19 pandemic is a health crisis. But the economic ramifications have been widespread.
Here are 7 steps you can take to alleviate concerns.
- Are you worried about a layoff? Save your stimulus check. We recommend an emergency fund of at least 3-6 months.
- Eliminate unnecessary outlays. Gasoline, Uber, health clubs, eating out, entertainment, and more have been curtailed. It’s had a devastating economic impact, but now is the time to save.
- Do you have federally held student loans? You can defer payments. If your finances are solid, payments go entirely toward principal.
- Mortgage forbearance programs may be available for those who have lost jobs. Be sure terms being offered are reasonable.
- Mortgage rates are at record lows. You could save hundreds of dollars every month if it makes sense to refinance.
- Are you self-employed and no longer earning income? The CARES Act enables you to apply for unemployment compensation. Though laws vary by state, apply and get the ball rolling.
- Do you need financial assistance? Many banks are willing to work with you, but you must reach out to them.
Removing the fog
We recognize that the road ahead may seem daunting. But the first step is to design a plan. The plan becomes your blueprint as you move forward. It lets you know where you stand, and the steps you’ll need to take.